AN ACT CONCERNING THE EQUAL REGULATION OF TELECOMMUNICATIONS SERVICES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 16-247f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2005):

(a) The department shall regulate the provision of telecommunications services in the state in a manner designed to foster competition and protect the public interest.

(b) Notwithstanding the provisions of section 16-19, [a telecommunications service] the following telecommunications services shall be deemed competitive services: (1) A telecommunications service offered on or before July 1, 1994, by a certified telecommunications provider and a wide area telephone service, "800" service, Centrex service or digital Centrex service offered by a telephone company, [shall be deemed a competitive service. Any] (2) a telecommunications service offered to business customers by a telephone company, (3) a home office service offered by a telephone company, and (4) a telecommunications service provided to a residential customer who subscribes to two or more telephone company services, including, but not limited to, basic local service, any vertical feature, or intrastate toll service. Unless reclassified pursuant to subsections (c) or (d) of this section, any other service offered by a telephone company on or before July 1, 1994, shall be deemed a noncompetitive service, provided such initial classification shall not be a factual finding that such service is noncompetitive.

(c) On petition, on its own motion or in conjunction with a tariff investigation conducted pursuant to subsection (g) of this section, after notice and hearing, and within ninety days of receipt of a petition or its motion or within the time period set forth in subsection (g) of this section, as applicable, the department shall reclassify a telecommunications service as competitive in a geographic area in which: (1) At least three persons offer commercial mobile telecommunications service to residents in the relevant geographic area, and (2) at least one person offers voice over Internet protocol service to residents in the relevant geographic area or a community antenna television company or its affiliate or a certified telecommunications provider offers telecommunications services to residents in the relevant geographic area.

[(c)] (d) On petition, on its own motion, or in conjunction with a tariff investigation conducted pursuant to subsection [(f)] (g) of this section, after notice and hearing, and within ninety days of receipt of a petition or its motion or within the time period set forth in subsection [(f)] (g) of this section, as applicable, the department may reclassify a telecommunications service as competitive, emerging competitive or noncompetitive, in accordance with the degree of competition which exists for that service in the marketplace, provided (1) a competitive service shall not be reclassified as an emerging competitive service, and (2) the department may extend the period (A) before the end of the ninety-day period and upon notifying all parties to the proceedings by thirty days, or (B) in accordance with the provisions of subsection [(f)] (g) of this section, as applicable.

[(d)] (e) In determining whether to reclassify a telecommunications service pursuant to subsection (d) of this section, the department shall consider:

(1) The number, size and geographic distribution of certified telecommunications providers of the service, provided the department shall not reclassify any service as competitive if such service is available only from a telephone company or an affiliate of a telephone company that is a certified telecommunications provider;

(2) The availability of functionally equivalent services in the relevant geographic area at competitive rates, terms and conditions;

(3) The financial viability of each company providing a functionally equivalent service in the relevant market;

(4) The existence of barriers to entry into, or exit from, the relevant market;

(5) Other indicators of market power which the department deems relevant, which may include, but not be limited to, market penetration and the extent to which the provider of the service can sustain the price for the service above the cost to the company of providing that service;

(6) The extent to which other telecommunications companies must rely upon the service to provide their telecommunications services;

(7) Other factors that may affect competition; and

(8) Other factors that may affect the public interest.

[(e)] (f) Each certified telecommunications provider and each telephone company shall file with the department a new or amended tariff for each competitive or emerging competitive intrastate telecommunications service authorized pursuant to section 16-247c. A tariff for a competitive service shall be effective on five days' written notice to the department. A tariff for an emerging competitive service shall be effective on twenty-one days' written notice to the department. A tariff filing for a competitive or emerging competitive service shall include (1) rates and charges which may consist of a maximum rate and a minimum rate, (2) applicable terms and conditions, (3) a statement of how the tariff will benefit the public interest, and (4) any additional information required by the department. A telephone company filing a tariff pursuant to this section shall include in said tariff filing the information set forth in subdivisions (1) to (4), inclusive, of this subsection, a complete explanation of how the company is complying with the provisions of section 16-247b and, in a tariff filing which declares a new service to be competitive or emerging competitive, a statement addressing the considerations set forth in subsection (c) or (d) of this section, as applicable. If the department approves a tariff which consists of a minimum rate and a maximum rate, the certified telecommunications provider or telephone company may amend its rates upon five days' written notice to the department and any notice to customers which the department may require, provided the amended rates are not greater than the approved maximum rate and not less than the approved minimum rate. A promotional offering for a previously approved competitive or emerging competitive tariff service or a service deemed competitive pursuant to section 16-247f shall be effective on three business days' written notice to the department.

[(f)] (g) On petition or its own motion, the department may investigate a tariff or any portion of a tariff, which investigation may include a hearing. The department may suspend a tariff or any portion of a tariff during such investigation. Not later than seventy-five days after the effective date of the tariff, unless the party filing the tariff, all statutory parties to the proceeding and the department agree to a specific extension of time, the department shall issue its decision, including whether to approve, modify or deny the tariff. If the department determines that a tariff filed as a new service is, in fact, a reclassification of an existing service, the department shall review the tariff filing as a petition for reclassification in accordance with the provisions of subsection (c) or (d) of this section, as applicable.

[(g)] (h) The provisions of this section shall not prohibit the department from ordering different tariff filing procedures or effective dates for an emerging competitive service, pursuant to a plan for an alternative form of regulation of a telephone company approved by the department in accordance with the provisions of section 16-247k.

Sec. 2. Section 16-247p of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2005):

(a) Not later than April 1, 2000, the Department of Public Utility Control shall, by regulations adopted pursuant to chapter 54, establish quality-of-service standards that shall apply on an equal basis with regard to all telephone companies and certified telecommunications providers and to all telecommunications services. Such standards shall include, but not be limited to, measures relating to customer trouble reports, service outages, installation appointments and repeat problems as well as timeliness in responding to complaints or reports. The department shall include with the quality of service standards methodologies for monitoring compliance with and enforcement of such standards. Such monitoring shall include input from employees of telephone companies and certified telecommunications providers, including members of collective bargaining units. No standard shall be applied and no penalty shall be applied pursuant to a standard unless the standard or penalty applies on an equal basis with regard to all telephone companies and certified telecommunications providers and to all telecommunications services.

(b) Not later than April 1, 2000, the department shall, by regulations adopted pursuant to chapter 54, establish comprehensive performance standards and performance based reporting requirements for functions provided by a telephone company to a certified telecommunications provider, including, but not limited to, telephone company performance relating to customer ordering, preordering, provisioning, billing, maintenance and repair. Such service standards shall be sufficiently comprehensive to ensure that a telephone company meets its obligations under 47 USC 251. Such regulations may also contain provisions the department deems necessary to prevent anticompetitive actions by any telephone company or certified telecommunications provider.

Sec. 3. Section 16-262d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2005):

(a) No electric, electric distribution, gas, telephone or water company, no electric supplier, no certified telecommunications provider and no municipal utility furnishing electric, gas or water service may terminate such service to a residential dwelling on account of nonpayment of a delinquent account unless such company, electric supplier, telecommunications provider or municipal utility first gives notice of such delinquency and impending termination by first class mail addressed to the customer to which such service is billed, at least thirteen calendar days prior to the proposed termination, except that if an electric, electric distribution or gas company, electric supplier or municipal utility furnishing electric or gas service has issued a notice under this subsection but has not terminated service prior to issuing a new bill to the customer, such company, electric supplier or municipal utility may terminate such service only after mailing the customer an additional notice of the impending termination, addressed to the customer to which such service is billed either (1) by first class mail at least thirteen calendar days prior to the proposed termination, or (2) by certified mail, at least seven calendar days prior to the proposed termination. In the event that multiple dates of proposed termination are provided to a customer, no such company, electric supplier or municipal utility shall terminate service prior to the latest of such dates. For purposes of this subsection, the thirteen-day periods and seven-day period shall commence on the date such notice is mailed. If such company, electric supplier or municipal utility does not terminate service within one hundred twenty days after mailing the initial notice of termination, such company, electric supplier or municipal utility shall give the customer a new notice at least thirteen days prior to termination. Every termination notice issued by a public service company, electric supplier, telecommunications provider or municipal utility shall contain or be accompanied by an explanation of the rights of the customer provided in subsection [(c)] (d) of this section.

(b) No such company, electric supplier, telecommunications provider or municipal utility shall effect termination of service for nonpayment during such time as any resident of a dwelling to which such service is furnished is seriously ill, if the fact of such serious illness is certified to such company, electric supplier, telecommunications provider or municipal utility by a registered physician within such period of time after the mailing of a termination notice pursuant to subsection (a) of this section as the Department of Public Utility Control may by regulation establish, provided the customer agrees to amortize the unpaid balance of his account over a reasonable period of time and keeps current his account for utility service as charges accrue in each subsequent billing period.

(c) No such company, electric supplier, telecommunications provider or municipal utility shall effect termination of service to a residential dwelling for nonpayment during the pendency of any complaint, investigation, hearing or appeal, initiated by a customer within such period of time after the mailing of a termination notice pursuant to subsection (a) of this section as said Department of Public Utility Control may by regulation establish; provided, any telephone company or telecommunications provider during the pendency of any complaint, investigation, hearing or appeal may terminate telephone service if the amount of charges accruing and outstanding subsequent to the initiation of any complaint, investigation, hearing or appeal exceeds on a monthly basis the average monthly bill for the previous three months or if the customer fails to keep current his telephone or telecommunications account for all undisputed charges or fails to comply with any amortization agreement as hereafter provided.

(d) Any customer who has initiated a complaint or investigation under subsection (c) of this section shall be given an opportunity for review of such complaint or investigation by a review officer of the company, electric supplier, telecommunications provider or municipal utility other than a member of such company's, electric supplier's or municipal utility's credit department, provided the Department of Public Utility Control may waive this requirement for any company, electric supplier or municipal utility employing fewer than twenty-five full-time employees, which review shall include consideration of whether the customer should be permitted to amortize the unpaid balance of his account over a reasonable period of time. No termination shall be effected for any customer complying with any such amortization agreement, provided such customer also keeps current his account for utility service as charges accrue in each subsequent billing period.

(e) Any customer whose complaint or request for an investigation has resulted in a determination by a company, electric supplier, telecommunications provider or municipal utility which is adverse to him may appeal such determination to the Department of Public Utility Control or a hearing officer appointed by the department.

(f) If, following the receipt of a termination notice or the entering into of an amortization agreement, the customer makes a payment or payments amounting to twenty per cent of the balance due, the public service company, telecommunications provider or electric supplier shall not terminate service without giving notice to the customer, in accordance with the provisions of this section, of the conditions the customer must meet to avoid termination, but such subsequent notice shall not entitle such customer to further investigation, review or appeal by the company, electric supplier, municipal utility, telecommunications provider or department.

(g) No electric distribution, gas, telephone or water company, certified telecommunications provider, gas registrant or municipal utility furnishing electric, gas or water service shall submit to a credit rating agency, as defined in section 36a-695, any information about a residential customer's nonpayment for electric, gas, telephone, telecommunications or water service unless the customer is more than sixty days delinquent in paying for such service. In no event shall such a company, certified telecommunications provider, gas registrant or municipal utility submit to a credit rating agency any information about a residential customer's nonpayment for such service if the customer has initiated a complaint, investigation hearing or appeal with regard to such service under subsection [(c)] (d) of this section that is pending before the department. If such a company, certified telecommunications provider, gas registrant or municipal utility intends to submit to a credit rating agency information about a customer's nonpayment for service, it shall, at least thirty days before submitting such information, send the customer by first class mail notification that includes the statement, "AS AUTHORIZED BY LAW, FOR RESIDENTIAL ACCOUNTS, WE SUPPLY PAYMENT INFORMATION TO CREDIT RATING AGENCIES. IF YOUR ACCOUNT IS MORE THAN SIXTY DAYS DELINQUENT, THE DELINQUENCY REPORT COULD HARM YOUR CREDIT RATING".

Statement of Purpose:

To amend the statutes regarding the classification of telecommunications services and the imposition of sanctions for failure to comply with quality of service requirements and to apply, to certified telecommunications providers, requirements concerning the termination of residential service for nonpayment of a delinquent account.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]